WSJ: Suntech plans Chapter 15 U.S. bankruptcy filing

|About: Suntech Power Holdings Co.,... (STPFQ)|By:, SA News Editor

Onetime solar power giant Suntech (STPFQ) plans to file for bankruptcy protection in U.S. court as its leaders negotiate with the holders of ~$540M in convertible bonds, WSJ reports.

Suntech plans to file for protection under Chapter 15; if recognized by a U.S. judge, the Chinese solar panel maker will receive the benefits of U.S. bankruptcy law, including a halt to lawsuits and the prevention of creditors from seizing assets.

It remains unclear how much money from the reorganized company would eventually flow to the convertible bonds the company defaulted on in March.